CASTELLE TO ACQUIRE IBEX TECHNOLOGIES, INC.
Leader in LAN Fax Servers and Leader in Fax-on-Demand to Join Forces
SANTA CLARA, Calif., Aug. 22, 1996--Castelle (NSDQ:CSTL), a leading supplier of
internetwork fax- and print-server products, has signed a definitive agreement
to purchase Ibex Technologies, Inc., the market leader in fax-on-demand systems.
Under the terms of the agreement, which is accounted for as a pooling of
interests, Castelle will acquire all of the outstanding stock of the
privately-held Ibex Technologies in exchange for approximately 850,000 shares of
Castelle common stock. The closing sale price for Castelle common stock on
NASDAQ on Aug. 21, 1996, was $7.00 per share. The transaction has been approved
by the boards of directors of both companies and is subject to the approval of
Castelle and Ibex shareholders.
Castelle develops products that broaden communications among workgroup users by
enabling them to send and receive faxes and print documents from their networked
PCs; the products are sold through domestic and international distributors, and
selected OEMs worldwide. Ibex's product line includes fax-on-demand, fax
gateway, fax broadcast and Web fax applications which are sold direct and
through value-added resellers (VARs). According to recent market studies,
Castelle and Ibex hold 17 percent and 18 percent shares of the LAN fax and
fax-on-demand markets, respectively.
Xxx Xxxxx, Xxxxxxxx CEO and chairman, said the acquisition will create "an
entity that possesses the technologies and channels necessary to address the
emerging market for universal information-on-demand solutions integrating fax,
e-mail and the World Wide Web. Unlike many merging companies, Castelle and Ibex
have truly complementary, non-conflicting sales channels. Ibex has over 100
sophisticated VARs that have helped sell its products into Fortune 1000 firms.
Castelle's workgroup-oriented products are available through a worldwide network
of leading distributors and resellers. Together these channels will expand both
companies' sales opportunities, enabling Ibex to deliver fax-on-demand to the
mass market and Castelle to penetrate large enterprises with its LAN fax
solutions."
Following the completion of the acquisition, which is expected in October, Ibex
will operate as the Ibex Division of Castelle, and its 25 employees will remain
in the company's El Dorado Hills, Calif., headquarters. Xxxxx will head the
division, reporting to Xxxxx. Grant and other key Ibex executives will enter
into employment and non-competition agreements with Castelle.
Castelle reported 1995 revenues of $25.1 million. Ibex's 1995 revenues were
approximately $3.1 million.
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